1. Compute the net profit margin, total asset turnover, return on total assets, and return on common stockholders equity for both companies.

2. Assume each company paid a cash dividend of $1.50 per share and that each companys stock can be purchased at $25 a share. Compute each companys price earnings ratio and dividend yield.

3. Identify which companys stock you would recommend as the better investment and explain why.

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